Women stole identities in bid to claim $1 million in tax returns

Thursday

Jan 7, 2016 at 7:59 PMJan 7, 2016 at 8:01 PM

Andy Kravetz Journal Star public safety reporter @andykravetz

PEORIA — Two women admitted Thursday they used other people’s identities, including several taken from a Detroit veterans hospital in the hope of obtaining more than $1 million in fraudulent tax returns.

Ramona Peete, 42, of Detroit and Kathy Pilcher, 34, of Chicago both pleaded guilty in Peoria’s federal court to one count of conspiracy to defraud the government. Peete also pleaded guilty to an additional count of aggravated identity theft. Over a four-year time frame, federal prosecutors alleged they filed more than 800 bogus returns worth $1.3 million. They got about $500,000.

Many of those of returns were made with the personal information of several veterans obtained by Peete, who used her position at the John D. Dingell VA Medical Center to gain access to it, according to their plea agreements.

Peete then used that information to make false W-2 forms and other tax documents in support of the bogus returns. The money was then electronically deposited into bank accounts that belonged to her or friends. Other victims included about 15 people who lived in a Chicago apartment complex managed by Pilcher.

The conspiracy also involved another person, Nicholas Fussell, 34, who pleaded guilty in August 2013 to similar charges as Peete. He was linked to about $148,000 in false tax returns and, according to Peete’s and Pilcher’s plea agreements, he helped to obtain information as well as profit from the proceeds.

Both women face up to 10 years in prison on the conspiracy charge. The aggravated identity theft charge carries a two-year prison term, which would be served consecutively to anything Peete would get on the conspiracy count. Both are free on bond pending their May 5 sentencing in Chief U.S. District Judge James Shadid’s courtroom.

At sentencing, Shadid could also order the women to pay restitution to the victims or the federal government.

Andy Kravetz can be reached at 686-3283 and akravetz@pjstar.com. Follow him on Twitter @andykravetz.